ABSTRACT
The Russian economy has been described as a politicised economic system. The economic system is roughly divided into three parts: the oil and gas industry, the sector dependent on incomes from the oil and gas sector and the new private sector, consisting mainly of small and middle-sized enterprises including private farm. Russia is a resource-dependent economy and the policy of extensive growth of the Soviet era continues also in post-Soviet Russia. In parallel with the rising cost of food, consumer energy prices have been increasing as the government cuts subsidies and passes growing import costs onto the population. Significant proportions of the population live on incomes just above or below the poverty line, making poverty statistics highly susceptible to economic fluctuations. Russia has used budgetary reserves to raise pensions and social payments at regular intervals. During the Soviet period, local authorities were under party control. Russian society has specific features which complicate the implementation of grassroot-level projects.
